How we can help with debt consolidation in Oshawa

If you are a homeowner in Oshawa that is struggling with debt, the first call you should make should be to 1ONEFUND Financial. Why would you call an Oshawa mortgage broker you ask when you are having trouble paying off student loans, medical bills or credit cards you ask? Because, as a homeowner, you have some great options with us for debt consolidation. In fact, at 1ONEFUND Financial, we may even be able to help you if you are NOT a homeowner.

How we can help with debt consolidation in Oshawa:

If you are a homeowner and have been making your regular mortgage payments, you have been building up the equity in your home. Besides paying down the principal on your debt, it is extremely likely that the value of your home has been going up. This is equity, that you can borrow against at a fairly low interest rate – usually much lower than other forms of debt such as credit cards and personal lines of credit. And the lower your interest rates, the faster you can get out of debt.

When it comes to debt consolidation from home equity, you typically have two main choices. You can refinance your mortgage, or you can take out a second mortgage.

Refinancing your mortgage is when you break your current mortgage and get a new one. When you do this to consolidate debt, the new mortgage is the amount of your original mortgage plus the amount of the debt that you are consolidating (this makes it possible for you to pay off your other debts). You still have the same amount of debt, after a mortgage refinance, but now that you have one monthly payment and a lower interest rate, it makes it easier to pay off. The drawback of a mortgage refinance, is that there is a financial penalty for breaking your first mortgage.

The other option is a second mortgage. This option usually has a slightly higher interest rate, however, there is no financial penalty since you are not breaking your first mortgage.

If you are confused as to which option is best for you, you can sit down with one of our Oshawa mortgage agents and they can run the calculations to determine which strategy would be more favourable for you.

But what if you are not a homeowner?

Well, you should still contact 1ONEFUND Financial because we also offer unsecured loans which may be a good debt consolidation option for you.

If you would like to learn more about your options for debt consolidation, contact 1ONEFUND Financial today to speak with one of our Oshawa brokers.